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Costco customers sue for share of tariff refunds in class-action lawsuit

Apr 2, 2026, 9:43 AM

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A Costco sign hangs over the entrance to a wholesale store. (Photo: Joe Raedle, Getty Images)

(Photo: Joe Raedle, Getty Images)

Four Costco members in Washington filed a class-action lawsuit on Friday against the company to recover funds for customers who paid tariffs on imported products.

Seven total Costco members filed the lawsuit in the U.S. District Court for the Western District of Washington, according to The Seattle Times.

The lawsuit concerns Costco’s plan to handle refunds from tariffs imposed by President Donald Trump. The Issaquah-based warehouse chain is among a long list of major retailers vying for refunds on duty payments from the Trump administration.

Seattle Law Firm Emery Reddy, along with three other firms, is arguing that Costco would make “windfall profits” if it retained the tariff refunds.

Costco CEO promises transparency on handling potential refunds

Costco CEO Ron Vachris addressed the tariff refunds during an earnings call in March.

“Our commitment will be to find the best way to return this value to our members through lower prices and better values,” Vachris said, according to The Seattle Times. “We’ll be transparent in how we plan to do this if and when we receive any refunds.”

The lawsuit would extend to all consumers in the U.S. who purchased Costco products that were subject to tariffs under the International Emergency Economic Powers Act (IEEPA) from February 1, 2025, through February 24, 2025.

Plaintiffs seek restitution for “tariff overcharges” and other types of relief. In February 2025, the Trump administration engaged in a trade war with several countries, including Canada, China, and Mexico, seemingly approved through the IEEPA.

As a result of higher duties on imported goods, Costco, along with many other U.S. businesses, raised the costs it charged customers.

In November 2025, Costco sued the U.S. Customs and Border Protection in a move for the U.S. Court of International Trade to declare the tariffs as unlawful and receive refunds. The U.S. Supreme Court ruled against Trump’s ability to impose tariffs through the IEEPA in February. Chief Justice John Roberts found that all taxing power is delegated to Congress, not the executive branch.

Federal government prepares online portal for refund claims

The Supreme Court decision allows businesses that paid tariffs to receive refunds from the federal government. Last month, U.S. Customs and Border Patrol (CBP) told the Court of International Trade that it is developing a new system to record imports to calculate and provide refunds.

After the new system is completed, importers and brokers will be able to submit refund claims through an online portal.

CBP anticipates the refunds will be more than $130 billion, according to Bloomberg Law.

The attorneys suing Costco have claimed that the retailer “stands to recover the same tariff payments twice,” and has yet to mention if those refunds will be given to customers, according to The Seattle Times.

Tariffs and the refund process were major focal points on Costco CEO Vachris’s March quarterly earnings call.

“The future impact of tariffs remains extremely fluid,” he said, according to The Seattle Times. “It is not yet clear what the [refund] process will be, what refunds, if any, will be received, and when this will happen.”

Vachris noted that Costco didn’t pass the full cost of tariffs on to customers in many cases, and that it is difficult to gauge the full impact of changing tariff rates on the company’s individual items.

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